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Lecture Introduction to operations management - Chapter 10: Supply chain management

In this chapter we will discuss: Supply chain & supply chain management, purchasing and logistics, measuring supply chain performance, supply chain dynamics—the bullwhip effect, improving supply chain performance, supply chain structural improvements, supply chain infrastructural improvements, technology and supply chain management. | Operations Management Contemporary Concepts and Cases Chapter Ten Supply Chain Management Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin Chapter Ten Outline Supply Chain & Supply Chain Management Purchasing and Logistics Measuring Supply Chain Performance Supply Chain Dynamics—the Bullwhip Effect Improving Supply Chain Performance Supply Chain Structural Improvements Supply Chain Infrastructural Improvements Technology and Supply Chain Management Supply Chain The set of entities and relationships that cumulatively define materials and information flows both downstream toward the customer and upstream toward the very first supplier. Supply Chain Management “The design and management of seamless, value-added processes across organizational boundaries to meet the real needs of the end customer.” --Institute for Supply Management A Typical Supply Chain Suppliers’ Supplier Supplier Plan Customer Customer’s Customer Make Deliver Source Make Deliver Make Source Deliver Source Deliver Internal or External Internal or External Your Company Source SCOR Model Return Return Return Return Return Return Return Return Building Block Approach SCOR = Supply Chain Operations Reference-model SCOR is founded on five distinct management processes 21 4 Building block approach Source connects to supplier Deliver connects to customer Not all companies have make We can model as far up or down the supply chain as we view important (not limited to two tiers) Customers and / or suppliers can be internal or external Purchasing and Logistics The purchasing function: sources inputs into the transformation process of the firm from other for-profit and nonprofit organizations Global sourcing The logistics function: typically responsible for the actual movement and storage of goods across organizations in a supply chain Reverse logistics Measuring Supply Chain Performance (1) Delivery On time delivery of entire orders Fill rate Lead time Quality | Operations Management Contemporary Concepts and Cases Chapter Ten Supply Chain Management Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin Chapter Ten Outline Supply Chain & Supply Chain Management Purchasing and Logistics Measuring Supply Chain Performance Supply Chain Dynamics—the Bullwhip Effect Improving Supply Chain Performance Supply Chain Structural Improvements Supply Chain Infrastructural Improvements Technology and Supply Chain Management Supply Chain The set of entities and relationships that cumulatively define materials and information flows both downstream toward the customer and upstream toward the very first supplier. Supply Chain Management “The design and management of seamless, value-added processes across organizational boundaries to meet the real needs of the end customer.” --Institute for Supply Management A Typical Supply Chain Suppliers’ Supplier Supplier Plan Customer Customer’s Customer Make Deliver Source Make .